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Rapaport Weekly Market Comment
Feb 11, 2021 11:30 AM
By Rapaport News
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Slower trading as Far East markets close for Feb. 12 Chinese New Year. High hopes for China retail recovery during the season. Global jewelry sales -15% in 2020 after swift 4Q rebound with US +5% to +10%, China +15% to +20%, according to Bain report. US demand stable. Large volume of goods on short-term memo since travel restrictions are limiting in-person sales. Alrosa confirms strong Jan. rough trading with sales +8% to $421M. Operations suspended at Gahcho Kué mine due to Covid-19 outbreak. Hong Kong 4Q 2020 polished imports +4% to $3.6B, polished exports +12% to $3.3B. The Rapaport Group wishes all our friends a happy, healthy and successful Chinese New Year.
Fancies: Stable demand for select fancy shapes as consumers seek alternative designs at more affordable prices than rounds. Dealers hoping for increased sales of fancy-shape engagement rings. Rise in orders for Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Excellent cuts and nice shapes in demand and selling at premiums. Steady orders in China helping the market. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Sentiment positive. Retail sales steady ahead of Valentine’s Day. Government stimulus driving consumer spending. Bridal category moving well, fueling demand for 1.50 to 2 ct., G-H, SI goods. Difficult to source stones above 3 ct. due to high replacement cost. Improving interest in 2 ct., D-F, IF-VVS diamonds.
Belgium: Trading stable but lacking usual first-quarter buzz. US orders sustaining the market as Asia slows during Chinese New Year. Europe weak due to ongoing Covid-19 restrictions. Good dealer demand for 1 to 3 ct., G-H, VS-SI diamonds. Rough sector relatively quiet after strong January sales.
Israel: Dealers cautious as local business resumes after month-long lockdown. Most dealers continue to work from home due to ongoing concerns about Covid-19 infection. Some optimism for coming months as inventory levels go down. Diamantaires acclimating to current practice of shipping wider variety of goods to clients rather than holding in-person sales. Diamond exchange holding elections for new executive next week.
India: Polished activity slightly slower than in previous weeks due to Chinese clients closing for lunar new year. Steady orders from US and local jewelers. Improving demand for lower colors. Manufacturers maintaining stable discounts after rough prices rose in January. High polished production expected to create steady flow of new inventory in coming months.
Hong Kong: Market quiet as dealers take vacation for February 12 Chinese New Year. Positive retail momentum in mainland China during the season. E-commerce driving growth; strong emphasis on mobile platforms. Jewelers focused on satisfying rising millennial interest in GIA-graded, 0.80 to 1 ct., D-J, VS-SI, 3X diamonds for engagement rings. Hong Kong retailers more cautious due to lack of tourist traffic.
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Tags:
Rapaport News
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